I hope this message finds you well. I want to take this opportunity to provide you with clarity regarding the liquidation versus shares offer.
When some of Coinit’s clients initiated liquidation proceedings by applying for liquidation, it was important to recognize that Coinit did not operate as a Ponzi scheme, as has been alleged. In Coinit, assets were meant to generate income over time, typically three years, for the benefit of our clients. The decision to apply for liquidation meant that the full outstanding payments to clients could not be immediately available, as these assets needed to continue generating income over time to settle the debts, funds can’t simply manifest.
I consistently opposed the liquidation, believing that if the assets were allowed to continue working, clients would still receive their payments, albeit possibly with adjusted timelines. However, some clients persisted with the liquidation process, possibly due to misconceptions or lack of information, in spite it being the last resort in such situations.
Now, as things stand, Coinit’s assets are being sold through a rapid, fire-sale process, fetching prices far below their actual market value. This is being done to expedite fund collection for liquidators costs and other obligations, leaving very little, if anything, for distribution to clients.
Having extensive experience with liquidations, having acquired various businesses and assets through such processes over the years, I understand that if left unchecked, clients would likely receive only a fraction, if any, of their rightful claims. It is perplexing to witness the destruction of the very entity that was meant to benefit you and had benefited thousands over the years..
However for this reason, I have stood by you, incurring substantial legal costs running into the millions, in an effort to avert the worst possible outcome, not to mention the billions it will cost me to settle all but I will do so gladly. Unfortunately, liquidators are highly motivated to proceed, as it represents a significant payday for them, at our collective expense.
In light of this, we are actively negotiating a compromise with the liquidators. This compromise would still provide them with a substantial benefit while allowing those who opted to continue with the liquidation to recover 100% of their capital shortfalls in 60 months. This is contingent upon the acceptance of the compromise. If not accepted, those who chose the liquidation route may revert to a situation where no shares were issued to them, and they risk losing their investments due to liquidation shortfalls.
Rest assured, I have consistently acted in your best interest from the outset. Coinit was intended to benefit you, not the attorneys and liquidators at your expense. I trust that you will make the best decision for yourself and not succumb to peer pressure it’s your contract so is your choice in this challenging situation.
Lastly, I have received requests from several clients, clubs, committees, etc., for an extension of the submission deadline, as some clients have only recently become aware of this initiative. Consequently, I have decided to extend the document submission deadline to the 7th October 2023 to accommodate these requests.
Warm Regards
Malcolm de Beer
